It could be stated that an opportunity has no value unless a business has the capacity to take advantage of the opportunity that presents itself. China is a formidable market for many business ventures, but not many companies have the capacity to exploit this potential.
This reflects an important issue on how to approach the choices that a business will have to distinguish and choose from. A business may decide to invest more in its strengths to become more competitive or to invest in the weaknesses in order to bolster competitiveness. This strategic formulation or choices that a business has is the act of deciding how to match a companies internal strengths and weaknesses in such a way that there emerges four different sets of possible strategic alternatives:
1) SO strategy: Generate strategies that use Strengths to take advantage of Opportunities
2) WO strategy: Generate strategies that take advantage of Opportunities by overcoming Weaknesses
3) ST strategy: Generate strategies that use Strengths to avoid Threats and
4) WT strategy: Generate strategies to minimize Weaknesses and avoid Threats Remember that the strategic formulation seeks to improve the company’s competitive position and the tools or considerations that easily address the above are, functional strategies such as, for example, marketing strategies (e.g. product development, pricing, Porters Generic Strategies, timing tactics such a first mover advantage, market location tactics, strategic alliances, Joint venture and partnerships) Financial strategies such as Leveraged Buy Out’s Operations and management, among others. The choices would be derived from the analysis pointing to whether a corporate strategy, which involves growth (vertical or horizontal integration), stability or retrenchment strategies is feasible. Your analysis of the current environment will lead to this situational analysis where the information is integrated and decided upon for implementation. The important thing to remember is that you will need to bring your knowledge of the other topics into the various stages of the business strategy formulated.
Choice:
It could be stated that an opportunity has no value unless a business has the capacity to take advantage of the opportunity that presents itself. China is a formidable market for many business ventures, but not many companies have the capacity to exploit this potential.
This reflects an important issue on how to approach the choices that a business will have to distinguish and choose from. A business may decide to invest more in its strengths to become more competitive or to invest in the weaknesses in order to bolster competitiveness. This strategic formulation or choices that a business has is the act of deciding how to match a companies internal strengths and weaknesses in such a way that there emerges four different sets of possible strategic alternatives:
1) SO strategy: Generate strategies that use Strengths to take advantage of Opportunities
2) WO strategy: Generate strategies that take advantage of Opportunities by overcoming Weaknesses
3) ST strategy: Generate strategies that use Strengths to avoid Threats and
4) WT strategy: Generate strategies to minimize Weaknesses and avoid Threats
Remember that the strategic formulation seeks to improve the company’s competitive position and the tools or considerations that easily address the above are, functional strategies such as, for example, marketing strategies (e.g. product development, pricing, Porters Generic Strategies, timing tactics such a first mover advantage, market location tactics, strategic alliances, Joint venture and partnerships) Financial strategies such as Leveraged Buy Out’s Operations and management, among others. The choices would be derived from the analysis pointing to whether a corporate strategy, which involves growth (vertical or horizontal integration), stability or retrenchment strategies is feasible. Your analysis of the current environment will lead to this situational analysis where the information is integrated and decided upon for implementation. The important thing to remember is that you will need to bring your knowledge of the other topics into the various stages of the business strategy formulated.